PEACHTREE BOND FUND
(A Portfolio of Peachtree Funds)
SUPPLEMENT DATED JANUARY 25, 1996 TO PROSPECTUS DATED NOVEMBER 30, 1995
Effective January 9, 1996, in connection with the acquisition by NationsBank
Corporation of Bank South Corporation on the same date, NationsBanc Advisors,
Inc. ("NBAI") succeeded Bank South as the Investment Adviser to the Peachtree
Funds. The terms of the investment advisory agreement between the Peachtree
Funds and NBAI are substantially similar to the investment advisory agreement
between Peachtree Funds and Bank South, the Peachtree Funds' prior investment
adviser, which agreement terminated effective January 9, 1996, as a result of
the aforementioned acquisition.
Effective January 9, 1996, TradeStreet Investment Associates, Inc. ("TSIA")
will act as sub-adviser for the Peachtree Funds. Pursuant to the terms of the
sub-advisory agreement, TSIA will furnish NBAI with such investment advice and
statistical and other factual information as may be requested by NBAI with
respect to the Peachtree Funds.
Accordingly all references to "Bank South" throughout the prospectus shall be
deemed to refer to NBAI and/or TSIA, as the context may require.
In addition, please delete the section entitled "Adviser's Background" on pages
10 and 11 of your prospectus and replace it with the following:
"ADVISER `S BACKGROUND. NationsBanc Advisors, Inc. ("NBAI") is a wholly-
owned subsidiary of NationsBank, N.A., which is, in turn, a wholly-owned
banking subsidiary of NationsBank Corporation ("NationsBank"). NationsBank,
a bank holding company registered under the Bank Holding Company Act, is a
financial services company headquartered in Charlotte, North Carolina.
Through its banking subsidiaries and its various non-banking subsidiaries,
NationsBank provides banking and banking-related services, primarily
throughout the Southeast and Mid-Atlantic states and Texas. As of September
30, 1995, NationsBank had total assets of $182 billion.
NBAI is registered as an investment adviser under the Investment Advisers
Act of 1940, as amended, and effective January 1, 1996, began acting as
investment adviser to Nations Fund, NationsBank's proprietary family of
mutual funds. As of September 30, 1995, NationsBank's Mutual Funds Group
and Trust Investment Management Group had approximately $30 billion of
investment assets under management (including approximately $17 billion in
assets of mutual funds for which NationsBank affiliates served as
investment adviser). Effective January 1, 1996, substantially all of the
assets and operations of these Groups were transferred to NBAI and its
affiliate, TSIA, respectively. NBAI is located at 101 South Tryon Street,
NationsBank Plaza, Charlotte, North Carolina 28255.
As part of their regular banking operations, NationsBank affiliates may
make loans to public companies. Thus, it may be possible, from time to
time, for the Funds to hold or acquire the securities of issuers which are
also lending clients of NationsBank affiliates. The lending relationship
will not be a factor in the selection of securities.
SUB-ADVISER. Under the terms of a Sub-Advisory Agreement between NBAI and
TSIA, TSIA will furnish NBAI with such investment advice and statistical
and other factual information as may be requested by NBAI with respect to
the Fund.
SUB-ADVISORY FEES. For the services provided and the expenses incurred by
TSIA pursuant to the sub-advisory contract, TSIA is entitled to receive an
annual sub-advisory fee payable by NBAI from its advisory fee equal to .15%
of the daily net assets of the Fund. In the event that NBAI waives all of
its advisory fees with respect to the Fund under the investment advisory
agreement, it is expected that TSIA will waive its sub-advisory fees with
respect to the Fund under the sub-advisory contract.
SUB-ADVISER'S BACKGROUND. TSIA is a wholly-owned subsidiary of
NationsBank, N.A., which is, in turn, a wholly-owned banking subsidiary of
NationsBank. TSIA is comprised of more than 30 investment professionals
having significant investment industry experience. TSIA is located at 101
South Tryon Street, NationsBank Plaza, Charlotte, North Carolina 28255.
PORTFOLIO MANAGER. Gregory H. Cobb assumed responsibility for the day-to-
day management of the Fund in January 1996. Mr. Cobb is Vice President and
Fixed Income Portfolio Manager at TSIA. Mr. Cobb has been principal
portfolio manager for Nations Short-Term Income Fund since 1993.A member of
the Fixed Income Group, Mr. Cobb joined NationsBank in 1993 and has over 7
years of portfolio management experience. Mr. Cobb received a B.A. from the
University of North Carolina - Chapel Hill."
January 25, 1996
PEACHTREE EQUITY FUND
(A Portfolio of Peachtree Funds)
SUPPLEMENT DATED JANUARY 25, 1996 TO PROSPECTUS DATED NOVEMBER 30, 1995
Effective January 9, 1996, in connection with the acquisition by NationsBank
Corporation of Bank South Corporation on the same date, NationsBanc Advisors,
Inc. ("NBAI") succeeded Bank South as the Investment Adviser to the Peachtree
Funds. The terms of the investment advisory agreement between the Peachtree
Funds and NBAI are substantially similar to the investment advisory agreement
between Peachtree Funds and Bank South, the Peachtree Funds' prior investment
adviser, which agreement terminated effective January 9, 1996, as a result of
the aforementioned acquisition.
Effective January 9, 1996, TradeStreet Investment Associates, Inc. ("TSIA will
act as sub-adviser for the Peachtree Funds. Pursuant to the terms of the sub-
advisory
agreement, TSIA
FEDERATED SECURITIES CORP.
will furnish NBAI
with such
Distributor PE
investment advice
A subsidiary of FEDERATED
and statistical
INVESTORS
and other factual
Federated Investors Tower
information as may
PITTSBURGH, PA 15222-3779
be requested by
CUSIP 70467H200
NBAI with respect
G00221-12 (1/96)
to the Peachtree Funds.
Accordingly all references to "Bank South" throughout the prospectus shall be
deemed to refer to NBAI and/or TSIA, as the context may require.
In addition, please delete the section entitled "Adviser's Background" on pages
10 and 11 of your prospectus and replace it with the following:
"ADVISER `S BACKGROUND. NationsBanc Advisors, Inc. ("NBAI") is a wholly-
owned subsidiary of NationsBank, N.A., which is, in turn, a wholly-owned
banking subsidiary of NationsBank Corporation ("NationsBank"). NationsBank,
a bank holding company registered under the Bank Holding Company Act, is a
financial services company headquartered in Charlotte, North Carolina.
Through its banking subsidiaries and its various non-banking subsidiaries,
NationsBank provides banking and banking-related services, primarily
throughout the Southeast and Mid-Atlantic states and Texas. As of September
30, 1995, NationsBank had total assets of $182 billion.
NBAI is registered as an investment adviser under the Investment Advisers
Act of 1940, as amended, and effective January 1, 1996, began acting as
investment adviser to Nations Fund, NationsBank's proprietary family of
mutual funds. As of September 30, 1995, NationsBank's Mutual Funds Group
and Trust Investment Management Group had approximately $30 billion of
investment assets under management (including approximately $17 billion in
assets of mutual funds for which NationsBank affiliates served as
investment adviser). Effective January 1, 1996, substantially all of the
assets and operations of these Groups were transferred to NBAI and its
affiliate, TSIA, respectively. NBAI is located at 101 South Tryon Street,
NationsBank Plaza, Charlotte, North Carolina 28255.
As part of their regular banking operations, NationsBank affiliates may
make loans to public companies. Thus, it may be possible, from time to
time, for the Funds to hold or acquire the securities of issuers which are
also lending clients of NationsBank affiliates. The lending relationship
will not be a factor in the selection of securities.
SUB-ADVISER. Under the terms of a Sub-Advisory Agreement between NBAI and
TSIA, TSIA will furnish NBAI with such investment advice and statistical
and other factual information as may be requested by NBAI with respect to
the Fund.
SUB-ADVISORY FEES. For the services provided and the expenses incurred by
TSIA pursuant to the sub-advisory contract, TSIA is entitled to receive an
annual sub-advisory fee payable by NBAI from its advisory fee equal to .25%
of the daily net assets of the Fund. In the event that NBAI waives all of
its advisory fees with respect to the Fund under the investment advisory
agreement, it is expected that TSIA will waive its sub-advisory fees with
respect to the Fund under the sub-advisory contract.
SUB-ADVISER'S BACKGROUND. TSIA is a wholly-owned subsidiary of
NationsBank, N.A., a wholly-owned banking subsidiary of NationsBank. TSIA
is comprised of more than 30 investment professionals having significant
investment industry experience. TSIA is located at 101 South Tryon Street,
NationsBank Plaza, Charlotte, North Carolina 28255.
PORTFOLIO MANAGER. Philip J. Sanders assumed responsibility for the day-
to-day management of the Fund in January 1996. A member of TSIA's Value
Equity Group, Mr. Sanders has been the principal portfolio manager for the
Nations Capital Growth Fund since May 1995. He is also the Vice President
and Fund Manager of the Nations Balanced Target Maturity Fund. Mr. Sanders
joined NationsBank in 1988, and prior to joining NationsBank he was
employed at Duke Power Company for six years, where he supervised and
performed various types of detailed financial analysis. Mr. Sanders holds
a B.A. in Economics from the University of North Carolina in Charlotte. He
is a Chartered Financial Analyst and a member of the Association for
Investment Management and Research."
January 25, 1996
PA
PEACHTREE GEORGIA TAX-FREE INCOME FUND
(A Portfolio of Peachtree Funds)
SUPPLEMENT DATED JANUARY 25, 1996 TO PROSPECTUS DATED NOVEMBER 30, 1995
Effective January 9, 1996, in connection with the acquisition by NationsBank
Corporation of Bank South Corporation on the same date, NationsBanc Advisors,
Inc. ("NBAI") succeeded Bank South as the Investment Adviser to the Peachtree
Funds. The terms of the investment advisory agreement between the Peachtree
Funds and NBAI are substantially similar to the investment advisory agreement
between Peachtree Funds and Bank South, the Peachtree Funds' prior investment
adviser, which agreement terminated effective January 9, 1996, as a result of
the aforementioned acquisition.
Effective January 9, 1996, TradeStreet Investment Associates, Inc. ("TSIA will
act as sub-adviser for the Peachtree Funds. Pursuant to the terms of the sub-
advisory agreement, TSIA will furnish NBAI with such investment advice and
statistical and other factual information as may be requested by NBAI with
respect to the Peachtree Funds.
Accordingly all references to "Bank South" throughout the prospectus shall be
deemed to refer to
NBAI and/or TSIA,
FEDERATED SECURITIES CORP.
as the context may
require.
Distributor
In addition,
A subsidiary of FEDERATED
please delete the
INVESTORS
section entitled
Federated Investors Tower
"Adviser's
PITTSBURGH, PA 15222-3779
Background" on
CUSIP 70467H101
pages 10 and 11 of
G00221-13 (1/96)
your prospectus and replace it with the following:
"ADVISER `S BACKGROUND. NationsBanc Advisors, Inc. ("NBAI") is a wholly-
owned subsidiary of NationsBank, N.A., which is, in turn, a wholly-owned
banking subsidiary of NationsBank Corporation ("NationsBank"). NationsBank,
a bank holding company registered under the Bank Holding Company Act, is a
financial services company headquartered in Charlotte, North Carolina.
Through its banking subsidiaries and its various non-banking subsidiaries,
NationsBank provides banking and banking-related services, primarily
throughout the Southeast and Mid-Atlantic states and Texas. As of September
30, 1995, NationsBank had total assets of $182 billion.
NBAI is registered as an investment adviser under the Investment Advisers
Act of 1940, as amended, and effective January 1, 1996, began acting as
investment adviser to Nations Fund, NationsBank's proprietary family of
mutual funds. As of September 30, 1995, NationsBank's Mutual Funds Group
and Trust Investment Management Group had approximately $30 billion of
investment assets under management (including approximately $17 billion in
assets of mutual funds for which NationsBank affiliates served as
investment adviser). Effective January 1, 1996, substantially all of the
assets and operations of these Groups were transferred to NBAI and its
affiliate, TSIA, respectively. NBAI is located at 101 South Tryon Street,
NationsBank Plaza, Charlotte, North Carolina 28255.
As part of their regular banking operations, NationsBank affiliates may
make loans to public companies. Thus, it may be possible, from time to
time, for the Funds to hold or acquire the securities of issuers which are
also lending clients of NationsBank affiliates. The lending relationship
will not be a factor in the selection of securities.
SUB-ADVISER. Under the terms of a Sub-Advisory Agreement between NBAI and
TSIA, TSIA will furnish NBAI with such investment advice and statistical
and other factual information as may be requested by NBAI with respect to
the Fund.
SUB-ADVISORY FEES. For the services provided and the expenses incurred by
TSIA pursuant to the sub-advisory contract, TSIA is entitled to receive an
annual sub-advisory fee payable by NBAI from its advisory fee equal to .07%
of the daily net assets of the Fund. In the event that NBAI waives all of
its advisory fees with respect to the Fund under the investment advisory
agreement, it is expected that TSIA will waive its sub-advisory fees with
respect to the Fund under the sub-advisory contract.
SUB-ADVISER'S BACKGROUND. TSIA is a wholly-owned subsidiary of
NationsBank, N.A., which is, in turn, a wholly-owned banking subsidiary of
NationsBank. TSIA is comprised of more than 30 investment professionals
having significant investment industry experience. TSIA is located at 101
South Tryon Street, NationsBank Plaza, Charlotte, North Carolina 28255.
PORTFOLIO MANAGER. Michele M. Poirier assumed responsibility for the day-
to-day management of the Fund in January 1996. Ms. Poirier is presently
responsible for the management of Nations Municipal Income Fund, Nations
Florida Intermediate Municipal Bond Fund, Nations Florida Municipal Bond
Fund, Nations Georgia Intermediate Municipal Bond Fund, Nations Georgia
Municipal Bond Fund, Nations South Carolina Intermediate Municipal Bond
Fund and Nations South Carolina Municipal Bond Fund. Ms. Poirier, a Vice
President and Fixed Income Portfolio Manager of TSIA, is presently
responsible for over $1 billion in tax-free assets. She joined NationsBank
in 1990 and is the principal portfolio manager for 9 municipal bond mutual
funds and 6 municipal bond common trust funds. Ms. Poirier has over 20
years of investment experience from positions previously held in
management, sales and trading at Financial Service Corporation, Bankers
Trust Company and The Robinson-Humphrey Company, respectively. She earned a
B.B.A. in
FEDERATED SECURITIES CORP. marketing
from Georgia
Distributor RE State
A subsidiary of FEDERATED University."
INVESTORS January 25, 1996
Federated Investors Tower
PITTSBURGH, PA 15222-3779
CUSIP 70467H507
G00221-14 (1/96)
PEACHTREE PRIME MONEY MARKET FUND
PEACHTREE GOVERNMENT MARKET FUND
(A Portfolio of Peachtree Funds)
SUPPLEMENT DATED JANUARY 25, 1996 TO PROSPECTUS DATED NOVEMBER 30, 1995
Effective January 9, 1996, in connection with the acquisition by NationsBank
Corporation of Bank South Corporation on the same date, NationsBanc Advisors,
Inc. ("NBAI") succeeded Bank South as the Investment Adviser to the Peachtree
Funds. The terms of the investment advisory agreement between the Peachtree
Funds and NBAI are substantially similar to the investment advisory agreement
between Peachtree Funds and Bank South, the Peachtree Funds' prior investment
adviser, which agreement terminated effective January 9, 1996, as a result of
the aforementioned acquisition.
Effective January 9, 1996, TradeStreet Investment Associates, Inc. ("TSIA will
act as sub-adviser for the Peachtree Funds. Pursuant to the terms of the sub-
advisory agreement, TSIA will furnish NBAI with such investment advice and
statistical and other factual information as may be requested by NBAI with
respect to the Peachtree Funds.
Accordingly all references to "Bank South" throughout the prospectus shall be
deemed to refer to NBAI and/or TSIA, as the context may require.
In addition, please delete the section entitled "Adviser's Background" on pages
10 and 11 of your prospectus and replace it with the following:
"ADVISER `S BACKGROUND. NationsBanc Advisors, Inc. ("NBAI") is a wholly-
owned subsidiary of NationsBank, N.A., which is, in turn, a wholly-owned
banking subsidiary of NationsBank Corporation ("NationsBank"). NationsBank,
a bank holding company registered under the Bank Holding Company Act, is a
financial services company headquartered in Charlotte, North Carolina.
Through its banking subsidiaries and its various non-banking subsidiaries,
NationsBank provides banking and banking-related services, primarily
throughout the Southeast and Mid-Atlantic states and Texas. As of September
30, 1995, NationsBank had total assets of $182 billion.
NBAI is registered as an investment adviser under the Investment Advisers
Act of 1940, as amended, and effective January 1, 1996, began acting as
investment adviser to Nations Fund, NationsBank's proprietary family of
mutual funds. As of September 30, 1995, NationsBank's Mutual Funds Group
and Trust Investment Management Group had approximately $30 billion of
investment assets under management (including approximately $17 billion in
assets of mutual funds for which NationsBank affiliates served as
investment adviser). Effective January 1, 1996, substantially all of the
assets and operations of these Groups were transferred to NBAI and its
affiliate, TSIA, respectively. NBAI is located at 101 South Tryon Street,
NationsBank Plaza, Charlotte, North Carolina 28255.
As part of their regular banking operations, NationsBank affiliates may
make loans to public companies. Thus, it may be possible, from time to
time, for the Funds to hold or acquire the securities of issuers which are
also lending clients of NationsBank affiliates. The lending relationship
will not be a factor in the selection of securities.
SUB-ADVISER. Under the terms of a Sub-Advisory Agreement between NBAI and
TSIA, TSIA will furnish NBAI with such investment advice and statistical
and other factual information as may be requested by NBAI with respect to
the Fund.
SUB-ADVISORY FEES. For the services provided and the expenses incurred by
TSIA pursuant to the sub-advisory agreement, TSIA is entitled to receive an
annual sub-advisory fee payable by NBAI from its advisory fee equal to
.055% of the daily net assets of each Fund.
SUB-ADVISER'S BACKGROUND. TSIA is a wholly-owned subsidiary of
NationsBank, N.A., which is, in turn, a wholly-owned banking subsidiary of
NationsBank. TSIA is comprised of more than 30 investment professionals
having significant investment industry experience. TSIA is located at
101 South Tryon Street, PANationsBank Plaza, Charlotte, North
Carolina 28255."
January 25, 1996
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED
INVESTORS
Federated Investors Tower
PITTSBURGH, PA 15222-3779
CUSIP 70467H408
CUSIP 70467H309
